TAG Dies in the Senate

For now, the effort to extend the Transaction Account Guarantee has failed. The Senate vote to waive a Budget Point of Order failed Thursday, with 50 yes votes and 42 no votes.

The measure needed 60 votes to overcome the point of order and move forward to a chamber vote. That means as a standalone bill, S. 3637 is dead.

The banking lobby’s only hope to save the TAG bill would be to attach it to another piece of legislation, putting it in the same boat as credit unions looking for an amendment opportunity for member business lending.

CUNA President/CEO Bill Cheney called the vote “a death blow to the legislation” and noted the aggressive opposition credit unions voiced to the TAG bill is a first for the industry, but it won’t be the last.

“We will be alert for any attempt by banks to attempt to attach this bill to some other year-end legislative package – and will oppose any such effort just as energetically as long as there is no similar treatment for credit union business lending legislation in the same measure,” he said.

Cheney added that in the meantime, CUNA will continue to attempt to attach member business lending legislation to “any appropriate end-of-year legislative package.”

“Congress will be in session for at least another week and a half – this isn’t over until it’s over,” he said.